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Accounting for Variable Capital Companies (VCC) in Singapore


Accounting for Variable Capital Companies (VCC) in Singapore | Bestar
Accounting for Variable Capital Companies (VCC) in Singapore | Bestar

Accounting for Variable Capital Companies (VCC) in Singapore


Accounting for Variable Capital Companies (VCCs) in Singapore follows specific guidelines. Here's a breakdown of the key aspects:


Financial Statements:


  • VCCs must have their financial statements audited by a Singapore-based auditor. 

  • Accepted accounting frameworks include IFRS (International Financial Reporting Standards), Singapore FRS (Financial Reporting Standards), or US GAAP (Generally Accepted Accounting Principles). 


Key Accounting Considerations:


  • Fair Value Accounting:  VCC assets are measured at fair value, meaning the price at which they could be bought or sold in an arm's length transaction. 

  • Variable Capital Structure: The VCC's capital fluctuates with the issuance and redemption of shares. The paid-up capital always reflects the net asset value of the company. 

  • Fund Structure: The accounting treatment can vary depending on the VCC structure (standalone fund, umbrella fund with sub-funds, open-ended, closed-ended, etc.). 

  • Investment Classification: Debt and equity instruments within the VCC's portfolio need proper classification according to IFRS 9 for accurate financial reporting. 

  • Consolidation: Consolidation requirements apply to VCCs that are parent companies of a group. However, there are exemptions for umbrella VCCs with sub-funds measured at fair value through profit or loss (FVTPL). 

  • Currency Considerations: Both functional and reporting currencies need to be determined for the VCC fund. 


Additional Resources:


How Bestar can Help

Accounting for Variable Capital Companies (VCC) in Singapore


Here's how Bestar can assist with Variable Capital Companies (VCC) accounting in Singapore:


Understanding Bestar's Services:


  • Expertise in Singapore Accounting: Bestar highlights our experience with Singaporean accounting regulations, which is crucial for VCC compliance. 

  • Financial Statements and Audits: Our services include preparing financial statements and auditing, a requirement for VCCs. 


Areas of Support:


  • Fair Value Accounting: Bestar has experience with fair value accounting, essential for valuing VCC assets. 

  • Fund Structure Understanding: Our consultations could be valuable in navigating the specific accounting needs of your VCC structure (umbrella, standalone, etc.). 

  • Tax Management: Bestar provides tax services.  This could be helpful for managing a VCC's tax obligations.


To confirm our expertise in VCC accounting, contact Bestar. Our team is with experience with VCCs, particularly regarding fair value accounting, fund structures, and any relevant tax considerations.




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